Owning a timeshare is meant to be a convenient way to enjoy vacations year after year, but for many owners, it can quickly turn into a financial headache—especially when deceptive companies promise to rent out unused points for a profit. Tim and Sandy Miller, like many other vacationers, fell victim to such a scheme, losing thousands in the process.
If you own a timeshare or are considering purchasing one, here’s what you need to know to avoid falling into the same trap.
The Pitch That Sounds Too Good to Be True
The Millers, who own a timeshare in Myrtle Beach, South Carolina, had extra vacation points they weren’t planning to use. That’s when they received a call from a company called Points Payment Management, which offered what seemed like an easy solution: they would advertise and rent out the unused points for a one-time fee of $2,394. In return, the Millers were told they’d receive offers from prospective renters and potentially make money on their investment.
It sounded like a great deal. After all, why let valuable timeshare points go to waste? But after paying the upfront fee, the Millers received offers that mysteriously never panned out. Their vacation points remained unused, and they never saw a dime of the promised rental income. When they tried to get answers, the company went silent.
The Warning Signs of a Timeshare Rental Scam
Unfortunately, the Millers’ experience is far from unique. Complaints about Points Payment Management flooded the Better Business Bureau’s website, leading to an ‘F’ rating for the Florida-based company. Many customers reported the same experience: paying a hefty upfront fee for promised rental income that never materialized.
While timeshare resale and rental scams take different forms, they often share common red flags:
- Unsolicited Calls or Emails – If a company reaches out to you first, claiming they can rent or sell your timeshare, proceed with caution.
- Upfront Fees – Legitimate rental services take a commission after a successful booking, not a large payment in advance.
- Guaranteed Rental Income – No legitimate rental service can promise that your timeshare will be rented.
- Lack of Contact After Payment – Scammers often disappear once they’ve secured your money.
What the Experts Say—and What You Should Do Instead
Hilton Grand Vacations, the company that manages the Millers’ timeshare, acknowledged the rising number of scams targeting vacation owners. In a statement, the company said they actively educate their customers about these schemes, but the Millers said they never received a direct warning.
So, how can you protect yourself?
- Ignore Unsolicited Offers – If you receive a cold call or email from a company offering to rent your timeshare, don’t engage. Legitimate rental services won’t contact you out of the blue.
- Verify with Your Timeshare Company – If you’re considering renting out your unused points, contact your timeshare’s management directly to explore your options.
- Never Pay Upfront Fees – A reputable rental service should only take a commission after successfully securing a booking.
- Check Reviews and Ratings – Look up the company on the Better Business Bureau, TrustPilot, and other consumer review sites before doing business with them.
- Consult a Timeshare Exit Expert if Necessary – If your timeshare is becoming more of a burden than a benefit, consider seeking professional advice on legally exiting your agreement rather than trying to recoup costs through risky rental schemes.
Final Thoughts: Stay Vigilant
Scammers continue to evolve their tactics, preying on those looking for a way to recover their timeshare costs. The best defense? Educate yourself, be skeptical of unsolicited offers, and always verify information with your timeshare management company before taking any action.
If you or someone you know has been targeted by a timeshare rental scam, report it to the Better Business Bureau (here) or the Federal Trade Commission (here) to help prevent others from becoming victims.