What is a timeshare? What to know about investing after Michigan couple is jailed in Mexico over dispute.
As we've followed the case of the Michigan couple currently jailed in Mexico over what they call a timeshare dispute, we wanted to explore and learn what you need to know to potentially avoid a difficult situation if you choose to make that investment.
"No. 1, you need to know if it sounds too good to be true, it probably is not true," said Jerrod Williams, owner and managing partner of Aaronson Law Firm, a Florida-based group that specializes in timeshare law and contract disputes.
Thousands of people purchase timeshares every year, a type of vacation property that works under a shared ownership model. In a typical timeshare setup, a buyer shares the cost of the property with other buyers, and in return, they receive a guaranteed amount of time at the property each year.
For Paul and Christy Akeo, the Spring Arbor, Michigan, couple stuck in a Mexican jail over what they call wrongful credit card charges, the situation may have started very simply.
"It all could be yours. All you have to do is sign up right here. We'll even provide the financing," said Williams.
Williams says this arrangement can sound incredibly appealing to people looking for a guaranteed vacation spot, but it can often turn sour quickly. He says investors are entitled to a rescission period, which allows owners to give written notice if they decide to withdraw from the deal.
Unfortunately, his firm has represented many people who do not realize they have that option until it's too late.
"Those timelines can be very, very short, and a lot of folks don't get a chance to get into their accounts to check whether or not what the sales presentation said is true," said Williams.
Azzam Elder with Dearborn-based Elder Brinkman Law says the Akeos' situation is concerning and raises questions about how the timeshare company could escalate what he calls a credit card dispute to a criminal level.
"The bottom line is it's a dispute about money, and the fact that they're locked up in a maximum-security prison, I find very strange," said Elder.
Elder says if Michiganders find themselves in a timeshare situation and are concerned about getting their money's worth, they should always use a credit card and approach the situation with a cool head.
"The truth is you don't know the laws. In some countries, you can be locked up, and even if they end up letting you go after a week or 10 days or two weeks, it's just an experience you want to avoid," said Elder.
