Consumer Blog

AG Nixon has sued a timeshare seller on consumer fraud charges, based out of Branson.

Almost every day we get complaints from seniors and others being victimized and sold a bill of goods while vacationing in Branson. Timeshare companies and travel clubs are the biggest sources of complaints. Consumers enter a high-pressure sales presentation, buy, then regret it.

Or if they don't regret it right away, they do as soon as they realize they're not getting what they were promised.

For those of you who vacation in Branson or have friends and family who do, tell them to think long and hard before accepting one of these travel pitches. At the very least, consumers should take a day to think about it, rather than signing right away.

When considering investing in a vacation property, you should weigh the pros and cons of both timeshares and a popular new option called fractional ownership. What many people think of as a timeshare is actually fractional ownership.

The two differ in that with timeshares, you pay to stay in the home you share with other people and do not have any ownership of the property. With fractional ownership you actually own a percentage-along with a number of other people-of a home or condominium, including the cost of the home, taxes and maintenance.

According to a recent Bankrate.com article, an increasing number of Americans are choosing fractional ownership over timeshares because of the perceived advantages of owning a percentage of a vacation home. For instance with fractional ownership, you have more control of where you'd like to vacation. When you choose a timeshare, you may not have the choice of your perfect destination. Another benefit to fractional ownership is the possibility of earning equity with the appreciation of the property. Whether you are thinking about fractional owner in a Tuscan villa for a quarter of the year, or in a timeshare in Branson for a week, both options come with risks.

You may have read previous blog entries pertaining to fraud that occurs in the timeshare industry. Complaints of scams received by our office include timeshare companies that try to sell properties that don't exist. Or, they might lead you to believe that the property is in a more desirable location than it is; for instance, the company may promote the location is "seaside" or "oceanfront" when it is really miles from the beach.

There are disadvantages and risks to fractional ownership too. As with any ownership, you are in charge of maintenance, insurance, etc. With an unstable housing market, you may not be able to sell your part of the property. Finally, there are currently very few lenders who are willing to finance a fractional ownership. Bottom line: When considering either timesharing or fractional ownership, you should have a "buyer beware" mentality. And look at this as a luxury expense, rather than an investment. It is wise to investigate as much as possible and have an attorney review any contracts before you make a decision.

Today marks a record setting high for gas prices across the nation and consumers are feeling the pinch. What can you do to help control gas prices?

When a gas station's price is 18 cents above the national average, people may report the gas station. The Energy Information Administration has a web site for individuals to check these averages on a daily bases and be able to compare them to what is current, yesterday, a month, and a year ago. Keep in mind that unless a gas station is selling 18 cents above the national average, they can set their prices as they see fit.

In the past, Attorney General Nixon has sued gas stations for price gouging in the aftermath of 9/11 and Hurricane Katrina. Missouri's price-gouging regulations prohibit charging excessive prices for necessities (including gasoline) in disaster areas, and price gouging is an unfair practice under state consumer protection laws.

If you believe a particular gas station is charging excessively for gas, please provide our office with any specific information that you have concerning that specific station. This should include the business name and its location along with any substantiating documents you may have in your possession. Please do not submit complaints about the price of gas in general. To report a gas station, please feel free to contact the Consumer Protection Hotline at 1-800-392-8222 or file a consumer complaint online.

For those of you who like to travel, especially those who may find themselves in Branson soon, beware: One of the most consistent types of consumer complaints to AG Nixon's office is the travel club contract.

Almost every complaint looks the same - there are about three issues that rotate as the major problem consumers have with these:

1. They claim you will get good deals on future travel, but the deals turn out to be no better than what you can find on your own.
2. They claim they'll help you sell current vacation property, like a timeshare, then they don't.
3. They won't let you cancel, even though you signed under high pressure. Normally consumers hear a travel club sales pitch during a 90-minute presentation they agreed to attend in exchange for a free hotel stay or some other perk.

See page 11 of our consumer publication Know Your Rights for more on this. For those of you over 50, you may receive the AARP Bulletin, which interviewed me on the subject for an article this month.

I had a voice mail when I came into the office today from a Carmen, saying "we've been trying to reach you for some time - you may have won a Ford Explorer." I don't need to call back - here's what will happen:

• I will be told the exciting news that I could win one of three "fabulous prizes." Perhaps an Explorer, cash or electronics, like a cool TV.
• My wife and I will be given a free weekend at a hotel, likely in Branson.
• During that weekend, all we have to do is attend a 90-minute sales presentation, likely on a travel club or a timeshare.
• After that, we'll find out which of the three prizes we've won.

The 90-minute presentation is the key. You can read about these in our encyclopedia under travel club or timeshares. These are often high-pressure sales situations. The Attorney General gets frequent complaints about their tactics, including the fact that many of these operators will physically block the exit and not let consumers out.