Texas Department of Insurance Issues Warning About Timeshare Fraud

January 27, 2015

The Texas Department of Insurance (TDI) warns owners of timeshare vacation properties of a fraud scheme involving unlicensed title insurance companies. Consumers should always make sure they are dealing with properly licensed title companies and can contact TDI’s Consumer Help Line at 1-800-252-3439 for assistance.

Timeshare fraud typically begins when a person contacts timeshare owners and either says they are representing a buyer or offers to help them sell their properties. The person sends the owner to work with a specific title company, but the company doesn’t exist. The company address, phone number, and website are legitimate-looking but are all fake. Finally, the person asks the owner to send money to an account in Mexico and then disappears without providing any services.

“These fraudulent schemes typically involve a company that has gone by several different names, but none are licensed by TDI,” said Commissioner David Mattax. “Timeshare fraud is a serious crime, which can cost consumers thousands of dollars.”

TDI urges consumers to make sure any title company they work with is licensed or registered to sell title insurance in Texas by calling the TDI Consumer Help Line at 1-800-252-3439. Consumers should know the company’s exact name. Unlicensed companies often use names that are similar to the names of licensed companies, according to TDI. The department also encourages consumers to verify that the title insurance company they are using has a physical office with a real address and a working phone number.

Contact ALTA at 202-296-3671 or communications@alta.org.