♪ ("LAST WEEK TONIGHT" THEME PLAYS) ♪
With this being spring break season,
our main story tonight concerns vacations.
A wonderful time to realize that you're in love with someone,
or realize that you are absolutely not.
And be honest,
you knew in the TSA line before the flight.
Keep those streaming passwords for as long as you can,
but do give back his grandmother's ring.
Specifically, we're gonna talk about timeshares.
And some of you might be thinking, "Hang on, hold on,
are you gonna tell me that they are a scam?
Because, surely, everybody knows that."
And it is true that the sketchiness
of timeshare vacations
has been a punchline on TV for years.
You moron, these aren't free vacations.
These are timesharing deals. They're total scams.
These timeshare people,
they don't stop until they sell you something.
They-- They pray on the weak and gullible, i.e. you.
Perhaps you and your yellow friend
would like to set up a timeshare plan?
Don't do it, Sandy!
I won't give into your timeshare vacation scam!
Yeah, suspicions about timeshare programs
are so ubiquitous,
they can get laughs in children's programming.
And look, obviously,
SpongeBob was never going to say yes to a timeshare.
Otherwise, they'd have had to change his theme song to this.
♪ Oh... ♪
♪ Who lives in a pineapple Under the sea? ♪
♪ Except for one week a year ♪
♪ When he's in a studio In Key West? ♪
♪ SpongeBob SquarePants! ♪
Yeah, it's still good,
but it doesn't quite have the same ring to it, does it?
But despite decades of mockery on TV,
timeshares are a much bigger business than you may think.
They're actually an 8.1 billion dollar industry
with nearly 10 million households
owning one or more types of timeshare.
And they can be sold by big hotel chains
like Hyatt and Marriott,
as well as companies like Wyndham and Westgate Resorts.
But one of the things that may have obscured their continued growth
is that they're not always called timeshares now.
In recent years, they've been re-branded
as "vacation clubs" or "vacation ownership plans."
And while traditionally, you'd buy a timeshare
that consisted of one week every year at, say,
a condo in Florida,
nowadays, companies offer "floating weeks"
that can theoretically be used any time throughout the year
or "timeshare points" where you buy points
that you can redeem in a number of resort properties
owned by the same company.
But whatever you call timeshares,
the people selling them
maintain that they are not just excellent value,
they are actively good for you.
Here is a vice president at Westgate
firing up his sales team in the weirdest possible way.
Why are we here?
CROWD: To save lives!
RICHARD SIEGEL: To save lives!
Those who take the fewest amount of vacations
are most likely to have a heart attack.
You're just like a doctor, nurse, fireman,
policeman, a lifeguard.
They all save lives. And you all do it too.
You're right.
Timeshare salespeople save lives
just like doctors and nurses.
That is why during the initial outbreak of the pandemic,
we New Yorkers would loudly cheer
for all the timeshare salespeople
as they came back from work.
We do that at 6:00 p.m.,
and then if we still had some energy left,
we'd throw a few claps to hospital workers at 7:00
for whatever they were doing.
But the fact is, timeshares don't save lives.
In fact, in many cases, they can fuck them up.
Because they are incredibly easy to get into,
but as you will see, incredibly hard to get out of.
So tonight, let's talk about timeshares.
Let's start with the first thing that you probably
already know about them.
That they tend to be sold in-person, aggressively,
and while you're already on vacation.
Often by suckering people into agonizingly long sales presentations
with the promise of a free gift.
There are so many horror stories out there
like the woman whose parents were subjected...
Or the person who signed an agreement
following a five-hour presentation because, quote...
And I do get that!
Listen to a timeshare presentation is dead last
on the list of things that I want to do
for five straight hours,
right after watching Avatar: The Way of Water,
telling children that their pet hamster
was eaten by their other pet hamster,
and that neither one ever knew the child in question existed,
and, of course, hearing other people
talk about watching Avatar: The Way of Water.
(LAUGHTER)
The problem is though, once you are in that room,
companies can go to extreme lengths
to get you to commit on the spot.
Just watch as that Westgate executive
encourages his staff to stop at nothing
to make a sale.
SIEGEL: Our number one person in Orlando owns several weeks of timeshare.
You know, you should own at least one week yourselves.
And if you don't, lie, and say you do!
(CROWD LAUGHS)
Don't let these people leave here
without buying something!
Something!
I don't know what is more alarming there,
that he knew a camera crew was filming
and still instructed his sales team to lie,
or that he knew that and willingly wore that shirt.
Because what the fuck is that thing?
It looks like someone ate a Persian rug
and then threw up on him.
He looks like the mascot for divorce.
Lying is actually a key strategy
for many timeshare salespeople.
They will lie about everything,
from the ease of making reservations
to the total cost of the timeshare.
According to a lawsuit against Wyndham,
sales people even had an acronym, TAFT,
which stood for...
And come on, at this point, just say "fucking."
'Cause it's one thing to lie, it's another to do that
while talking like a middle schooler
who's in the car with their mom, but still trying to sound hard.
(LAUGHTER)
But the thing is,
lying is basically allowed in this industry.
Many timeshare agreements contain...
It's often referred to by attorneys as the...
And, look, I get that sales reps bullshit customers constantly.
It happens to me
every time a Warby Parker employee tells me,
-"You look so cool." -(LAUGHTER)
But you wouldn't expect them to be able to lie
about something as objective as how much a thing will cost.
Now, the good news is,
depending on where you made your purchase,
you can have between three and ten days
to rescind your signature.
But, remember,
a lot of people sign up for timeshares on vacation.
So, that time may expire before they get home
or have a chance to have a lawyer look at the contract.
And this would be less of an issue
if people generally loved their timeshares.
But a study found that...
Which is a rate of regret on par with
people who bought teacup pigs,
only to realize that teacup pigs don't really exist.
What do exist are baby pigs that grow into
a 90-pound piece of livestock that can suffocate your cat.
And at this point, let's talk
about why people might regret buying a timeshare.
And the first major reason, unsurprisingly, is cost.
Because the up-front cost
for a one-week annual timeshare vacation
can average around 24,000 dollars.
But that is just the beginning.
Because on top of that
come other expenses like maintenance fees,
which typically go up every year
and at high value resorts can run from...
And you are on the hook for those costs
whether you use your timeshare or not.
Which actually brings us to another major problem
because if what you bought is points
for a "floating week" plan,
you still need to book time at your resort,
which can be unexpectedly hard.
Just listen to this man explain his attempts
to book a vacation at the Westgate timeshare
that he bought in Branson, Missouri,
six years earlier.
The first year, I got a month in advance.
And they say, "You're calling,
you're giving us very short notice."
REPORTER: So year two, they called six months in advance.
"You're calling too early."
REPORTER: Year three, they called two months in advance
but were told they called "too late."
"You can still go, but...
we have to charge you like any other person."
REPORTER: So far, the Nasirs have spent
more than 15,000 dollars for a timeshare
they've never spent a single night in.
When the Nasirs complained to Westgate,
they were told they would have an easier time
using their timeshare
if they upgraded to a better plan
for an additional 15,000 dollars.
Yeah, that's not great, is it?
Being asked to pay 15,000 dollars
for something you've only seen in pictures
is not a timeshare,
that's an expensive and remarkably niche
OnlyFans account.
(LAUGHTER)
But Westgate's response is pretty common
across the industry.
Once you buy a timeshare, the pitch is,
"You really need to upgrade to get the most,
or possibly anything, out of your purchase."
And these upgrades are a fundamental part of the business model.
At one investment conference, Marriott stated that...
...after just five years.
So, it's hardly surprising that companies
frequently pressure people to pay for upgrades,
sometimes with the exact same aggressive tactics that
got them to buy the timeshare in the first place.
Customers of Wyndham Resorts have said that
whenever they go on vacation,
they'd be forced into so-called...
Where they were then pressured to spend more, like this woman.
REPORTER: The 76-year-old widow is deep in debt.
Owing more than 175,000 dollars after she claimed
she was repeatedly tricked and harassed
into buying timeshare points.
Folds' also claims in her lawsuit
Wyndham sales reps told her things to convince her
to buy more points that ended up not being true.
If I were to sign it,
then they could lower the interest rates.
REPORTER 2: Is that in fact what happened?
No. No.
REPORTER: She says Wyndham salespeople
also told her the company would buy back
any extra points she didn't use.
And that too, she later found,
wasn't exactly as it had been explained.
REPORTER 2: Were you surprised to discover that?
Very surprised.
Not only surprised, you may need to bleep this out,
I was mad as hell.
-(LAUGHTER) -Wow.
She is pissed there.
I know "mad as hell" might not sound that extreme
to us delinquents on HBO.
But coming from a 76-year-old woman in Tennessee?
That's the equivalent of a child screaming "motherfucker"
through a bullhorn at an elementary school.
It's that level of intensity.
So between fees
and the constant pressure to pay for upgrades,
you can see
how people might end up regretting their purchase.
Even those who initially enjoyed their timeshare
might end up wanting to get rid of it,
either because they're getting older
and not wanting to travel as much,
or they're just getting tired of going to the same place.
But the problem is,
whatever your reason for wanting to leave a timeshare,
you will soon realize it is very hard to do that.
And that is because
many agreements contain a so-called "perpetuity clause."
That means that the purchase,
as well as all those regular maintenance fees,
are a...
Which is ridiculous!
A contract for a vacation
shouldn't be harder to get out of
than fucking Scientology!
Where's Shelly, by the way?
I'm sure she's fine, but, uh, where is Shelly?!
Now, some developers claim to have programs
where they'll take a timeshare back,
but there is a lot of fine print there,
including the fact that they're often only available
at the developer's discretion,
and could involve paying a significant fee,
which sometimes can be...
And if the company won't take it back, good luck.
Because...
In fact, the resale site Red Week
shows a number of them
being sold for literally zero dollars.
And keep that in mind
any time anyone says that a timeshare is "an investment."
Investments are supposed to gain value.
A timeshare is as sound an investment
as opening a Ghislaine Maxwell themed restaurant.
Ghisly's! When you're here, you're in danger.
(LAUGHTER)
And all this actually gets one step worse,
thanks to something that's often framed
as a selling point for timeshares.
It's a great feeling to know that our grandchildren,
when we're not around...
-Yeah. It's passed onto them. -...will be enjoying it.
It'll be our legacy to them.
Now that we have two children,
it's kind of exciting that we know
that our credits will never go to waste.
It will still be in our family through our boys.
Okay. One of those boys seems happy about that.
But the other one does seem pissed.
And much more interested
in the upside down construction truck that he's holding,
and he's honestly right.
Because if there is one thing to take away from this episode,
it's that if you have a choice
between a timeshare and an upside-down truck,
take the truck every time!
At least you technically own that.
But given everything that you've seen so far,
you won't be surprised to hear that many people
aren't super keen on inheriting a timeshare.
And while you can technically decline it,
that can be much, much harder to do than you might think.
KSL REPORTER: Walking away does take work.
Namely, you must file a disclaimer of interest with the court,
saying that you reject the timeshare.
You only have nine months
after the death of your loved one to file it.
And even then, it's not that simple.
You see, when the first person in line rejects the timeshare,
it goes to the next in line,
and then the next, and the next.
Every single person has to file all of that paperwork.
It's true.
Every single person.
And timeshare paperwork
clearly isn't what grieving families need.
It is pretty upsetting to think
that there might genuinely be a market
for sympathy cards that say...
And all of this
brings us to what might be the most surprising thing here.
Timeshares are so difficult to get rid of,
a whole separate industry has now cropped up,
known as the timeshare exit industry.
You may have seen ads on TV for them,
or upbeat segments on local stations like these,
for a company called Timeshare Termination Team,
where they can get a pretty strong endorsement.
Colorado's local Timeshare Termination Team
has 100 percent success rate.
Joining us, trusted advisors Brian and Holly Wilbur,
with the first steps you need to take
to legally get out of your timeshare.
I'll be honest, I know I said this before too,
I didn't think this was possible but it actually is.
Now that sounds pretty great, doesn't it?
The basic pitch of exit companies
is for an upfront fee.
They'll either resell your timeshare,
or get you out of your contract.
And given how critical they are of the timeshare industry,
you might assume
that they are the good guys in the story.
Unfortunately, they are very much not.
Which you probably already suspected
after that woman claimed a "100 percent success rate."
Because that's one of those phrases
that's just an automatic red flag.
Like, "Endorsed by Dr. Oz," or "Forbes cover model."
It just immediately raises suspicions.
(LAUGHTER)
Also, you should know,
while that sure looks like the news, crucially, it,
and all those shows you just saw,
are "sponsored content programs."
We did a story on them a couple of years ago,
and it's where local stations will allow you to buy your way
into fake segments that look like news,
but are, in fact, ads.
We actually bought our way onto that exact show, on Denver7,
to sell a Nazi fuck blanket.
And if you missed that story,
go back and watch the whole thing,
because that was one hell of a sentence
that's missing about 21 minutes of context.
Anyway, as it turns out,
Timeshare Termination Team
was even sketchier than our Third Reich fuck fleece.
Because not-- not long after that,
Denver7's actual news team had this story to report.
DENVER7 REPORTER: Debbie hired the company in June 2019.
In all, she paid more than 14,000 dollars.
Signed a contract, a two-year contract,
that ended this last June.
Well, under the terms of the contract,
if they don't resolve my issue, I can get a refund.
DENVER7 REPORTER: Two years came and went.
That's when she went looking for answers.
DEBI RAMERT: And so I came to...
came to see them, and it's empty.
DENVER7 REPORTER: The signs are still up on this office
in Greenwood Village.
(KNOCKING)
But there's no employees. The furniture is gone.
Wow. First, I'm not sure it was totally necessary
to force her to go back and knock on the glass
in a clearly empty office, but I'm very glad that they did.
But second,
that is a 19th century snake oil salesmen-level scam.
They just disappeared!
One moment, they were there, the next,
they were suddenly gone with no warning.
Like a ghost, or a TV show on HBO Max.
(LAUGHTER)
Everything's fine at this company.
Everything's fine.
(APPLAUSE)
And unfortunately, that is by no means a one-off.
As one consumer advocate puts it...
But you know what? I do like generalizations.
So, I'm happy to say,
timeshare exit companies are total bullshit.
A lot have followed the same basic pattern
that you just saw.
They'll charge an upfront fee,
and then either stall indefinitely,
or fully disappear.
And they are taking advantage of people on a massive scale.
In Missouri,
one group of companies stands accused of deceiving...
And while that case is still pending,
all of these other companies have gone under in recent years.
And I know that these exit companies
might seem immediately suspicious to you now,
but they have slick marketing,
and have also been endorsed
by some supposedly financially savvy people.
In fact, Dave Ramsey,
the popular personal finance guru,
who, to his credit,
has been a vocal critic of timeshares,
actually gave one exit company a ringing endorsement.
Timeshare Exit Team will get you out of their timeshare.
Now, you're gonna pay them money to do that.
That's what they do.
And they charge you upfront,
and they give you your money back guarantee,
if they don't get you out, but they'll get you out.
Well, that sounds trustworthy, doesn't it?
And after all,
why wouldn't you take the word of a man whose look
and general vibe answers the question,
"What if Billy Joel and Dr. Phil had a kid, and it sucked?"
-(LAUGHTER) -But--
But not long after that,
the Washington State AG sued Timeshare Exit Team,
claiming, among other things, that...
...or...
The company eventually shut down,
but only after it was forced
to pay 2.6 million dollars in restitution.
And if you're thinking any of that
gave Dave Ramsey pause for reflection,
you should know, it did not.
Because after Inside Edition did a segment
covering Timeshare Exit Team's issues,
and questioning his endorsement of them,
he pushed back like this.
I didn't know you could buy a story on Inside Edition.
I didn't-- I didn't think you all were that--
I knew you were tabloid,
but I didn't know you were that low.
Or are you just so dumb...
that you didn't understand
you were on the wrong side of this argument
on the basis of the consumer?
So this is why Timeshare's not on the air anymore.
Timeshare Exit Team.
But guess who's still on the air?
Me.
(AUDIENCE LAUGHS)
Me.
And I'm sitting...
in a 300 million-dollar paid-for building...
neck deep in cash, you jerks.
-(LAUGHTER) -Yeah!
That is champion of the working people, Dave Ramsey.
Bragging about being neck deep in cash to his own viewers
who got caught up in a scam that he actively promoted.
All while having his hands like this.
A pose used almost exclusively by cartoon supervillains
plotting ways to kill Batman.
(LAUGHTER)
But the thing is,
there is no right side to be on here.
Timeshare companies and timeshare exit companies
are both terrible.
One is a shitty business model that's somehow technically legal
and the other is oftentimes and out-and-out scam.
But neither is good.
And it's very important not to lose sight of the fact
that beneath all of this,
are people who can get victimized,
and in some cases, twice!
If you watch a lot of stories about these companies,
it is heartbreaking
just how often the people in them
talk about how ashamed they feel about falling for this.
Nobody in my family knows. Nobody.
Makes you feel bad when you think
you done something this stupid.
Well, we bought the timeshare, which took us to the cleaners.
And it just-- It made me feel stupid.
It doesn't make me feel good.
You know, it's like, I think I'm smarter than that.
Yeah, I get that.
But to be clear, the shame here should not be
on the people who were duped.
It should be on the industries that exploited them,
told them "any frigging thing" they wanted to,
and abused their understandable desire
just to take a fucking break.
So, what can we do here?
Well, on the off chance that anyone watching right now
is considering a timeshare,
don't do it.
If you know someone considering it,
send them this segment.
If you happen to inherit a timeshare,
get rid of it as fast as possible.
And if it's too late and you're stuck with it,
you can try and give it away for zero dollars online.
But the truth is, you'll only be fucking someone else over, then.
Unfortunately, the best option might actually be
to call the timeshare company
and see if there is any chance
that they will take it back from you.
As for exit companies,
as you have seen, there's been sporadic legal action
against individual companies.
But by land large,
it is a whack-a-mole ecosystem.
When one goes down,
another one tends to pop right up.
So the truth is, the best bet right now
seems to be to make sure that we all warn each other
about just how fucked up this whole industry is.
Or, I suppose, we could go another way with it.
And if you can't beat them, join them.
So, joining me now for a special sponsored segment
that she may or may not have paid three thousand dollars for,
please welcome back to the show my lovely wife,
-Wanda Joe Oliver! -(CHEERING)
♪ (UPLIFTING MUSIC PLAYS) ♪
(CROWD CHEERING)
Hello there, M' Wanda.
Hello there, M'John!
Now Wanda, I understand you have a new timeshare product
that you'd like to share with us.
That's right. I'm here to introduce my new company,
Timeshare Exit Squared.
Yes. The world's first ever timeshare exit company exit company.
Wow. Fascinating, Wanda!
What does Timeshare Exit Squared do exactly?
Well, let's say you're stuck in a timeshare,
and you go to an exit company to get you out of the contract.
But uh-oh! That company just took all your money
and disappeared without doing a dang thing!
Well, Timeshare Exit Squared can free you
from your timeshare exit company and get all your money back!
Wow! That is amazing, Wanda.
You are truly saving lives.
Just like doctors, nurses, and fire fighters.
-You are. You are. -Yes.
You are. You are, Wanda.
I am way better than all them.
All those people are scum compared to me!
-I spit on them. (SPITTING LOUDLY) -You spit?
Wow. As you should, M'Wamda.
Now tell me, how exactly does Timeshare Exit Squared work?
How does it work?
Well, it couldn't be easier, M'John.
JOHN OLIVER: Mm-hmm.
Simply pay us a quick and easy upfront fee
of 20,000 dollars.
And within three to 58 business months...
(LAUGHTER)
...your timeshare exit company will deposit a full refund
to your bank account!
Wow. Wanda, is that guaranteed?
Oh, it's even better than a guarantee.
It's a pinky swear promise!
Ooh.
I like it. I like that.
That why Timeshare Exit Squared
has over 9.3 billion happy customers.
And a 200 percent satisfaction rate!
A 200 percent, you said?!
That's right! For every Timeshare Exit Squared customer,
another random person is also left satisfied.
Wow!
Wanda, that is incredible.
I'll be honest. I didn't think this was possible,
but it actually is!
It sure is! Depending on your definition of possible.
Sure, sure. That's fair.
And if you run into any problems or delays,
just call our hotline at...
Oh, nice. Nice.
Yeah.
Or come to the Timeshare Exit Squared offices!
And do you know what? How would someone do that, M'Wanda?
Well, all you have to do is drive up
next to the Timeshare Exit Squared van
and scream your 27-digit case number.
And we'll be happy to help with anything you need
until we cross the border into Nogales, Mexico.
That sounds very reasonable.
But people should act fast, shouldn't they M'Wanda?
That's right, M'John!
This particular company is only going to exist
-for the next three days. -Right.
-Then we're shuttin' it down
and starting a new one in the Cayman Islands!
-Have you ever been? -I haven't. I haven't.
Well, I could sell you one week a year
for just 50,000 dollars!
Ooh, I like it!
And nobody leaves here without buying somethin'.
Somethin'.
She's right. Thank you so much M'Wanda.
That's our show, thank you so much for watching.
We're off next week, we'll be back after that.
Goodnight!
Thank you so much, M'Wanda!