ARDA Adopts Model Timeshare Resale Act
Written by: Traver
People within the timeshare industry are most likely familiar with the organization American Resort Development Association, or ARDA for short, which has been a valued member of the timeshare community since their inception. ARDA has a mission to fight for the rights of everyone involved with the timeshare industry from timeshare resort developers down to timeshare owners. In the past ARDA has been recognized for their efforts to pass legislation and being involved in the government when an issue involves the timeshare industry. ARDA has recognized and fought to stop timeshare resale fraud in the past, recently the organization took another step in this fight against fraudulent activity.
In November of 2010 at their annual fall conference in Washington DC, ARDA’s board of directors voted to adopt a proposed timeshare resale act. The act has been under debate for almost a year, since it has been approved by ARDA and many high level companies in the timeshare industry, state governments will now have a template to use when encountering fraudulent timeshare resale companies who are attempting to scam owners out of their money. The timeshare resale act seeks to outline regulatory restrictions and even impose penalties to company’s who are attempting to defraud owners. The act is rather long but full of good information, if you would like to read it for yourself please visit “ARDA Model Timeshare Resale Act”. A nice summary of the act can be found in the document’s preamble, which we have quoted below:
“The Model requires resale entities to provide reasonable information to consumers, prior to the consumer paying any “consideration” so that consumers can make informed decisions and compare costs and services. Failure to make the required disclosures is an immediate violation of the Act. The Model also poses certain obligations on resale entities that offer or promise to relieve the consumer of the ownership of his or her timeshare or to terminate such ownership. The Model contains a long list of prohibited practices, based on the experiences and reports of consumers as well as various ARDA members. The Model does not include any requirements for consumers, as it should not be any more difficult for them to buy, sell or rent. ARDA recognizes that the truly fraudulent companies will not follow any law so violations of the Model are intended to be punished through government enforcement actions and consumer lawsuits with serious penalties and consumer redress.”
Vacation Timeshare Rentals would like to commend ARDA for taking such initiative and addressing a problem which has been ever increasing during the last few years of this country’s economic downturn. While this act will certainly not stop all criminals from trying to steal from timeshare owners it will at least provide local governments an outline for how to handle these cases. If you’re a timeshare owner you have most likely been contacted by one of these companies, they are at the very least a major annoyance, how do you feel about the proposed timeshare resale act?
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