Dave Ramsey speaks Wednesday, Could 14, 2014 at Abravanel Corridor in Salt Lake Metropolis. | Scott G Winterton
Utah Sen. John Curtis on Friday joined private finance skilled Dave Ramsey on “The Ramsey Present” to debate the timeshare business and Curtis’ plan to guard customers with the Timeshare Transparency Act.
Ramsey referred to the timeshare business as “legalized fraud.”
Through the interview, Ramsey and Curtis highlighted years of economic information and shopper complaints that present how the vast majority of timeshare patrons remorse their selections however are locked into long-term contracts with escalating charges.
Ramsey stated that 85% of all timeshare patrons remorse their buy however can’t cancel it due to a brief rescission window.
“Let’s face it, if 85% of the individuals remorse entering into it, there must be a way for them to get out of it,” Curtis stated.
Ramsey stated that many individuals attempt to get out of their timeshares by promoting them since they will’t again out of the contracts.
“There’s no backing out and there’s no strategy to promote the silly factor as a result of no one desires to purchase them. There are tons of and tons of and tons of of them on the market on eBay for $1,” he stated.
The pair agree many seniors who’re on trip away from individuals they belief get locked into contracts.
“They’re away from their regular assist construction after they get into these very, very high-pressure gross sales methods, then they perhaps make a nasty choice, after which they don’t have a window to vary that call,” Curtis stated. “That’s simply incorrect.”
The Timeshare Transparency Act goals to control the timeshare enterprise whereas offering customers extra readability on what they’re truly buying.
The laws was not too long ago launched by Curtis and Sen. Adam Schiff, D-Calif. Curtis briefly defined to Ramsey what it does.
“First, it is best to know what you’re shopping for — there must be transparency; second, it is best to know if there’s going to be radical adjustments to what you’ve purchased; and third, it is best to have the ability to change your thoughts inside an agreed upon time period.”
The invoice features a 14-day free cancellation interval which Ramsey claimed would lower timeshare gross sales by 70%.