The Better Business Bureau is asking Alaskans to be wary of businesses fraudulently offering to sell their timeshares after a woman in the state lost tens of thousands of dollars in a nationwide scam.
The BBB believes that the firm implicated in the case -- Carriage House Travel Inc., which claimed to have an office in Kirkland, Washington -- is no longer in business.
"Consumers allege the company offered to sell their timeshare properties, then requested consumers wire fees ranging from $3,000 to $40,000 to a Mexican bank," BBB officials wrote. "Consumers allege the company made false statements about their services and they subsequently requested refunds which were not received."
Michelle Tabler, the BBB's regional manager in Alaska, said the woman was approached by Carriage House beginning in February.
"She and her husband lost $26,800 on this," Tabler said. "Her friends didn't know she had done this, and she was too embarrassed to talk to the media."
Although Alaskans are frequently targeted from a distance by phone and online scams, Tabler said, timeshare scammers can hit Alaskans in a particularly vulnerable spot.
"Alaskans tend to travel, so they tend to have these timeshares also," Tabler said. "One of the big red flags is that they call to ask you to sell your timeshare, and they say they have a buyer for you."
According to the BBB, the operators of Carriage House started by asking victims to cover initial expenses, such as closing costs and bank fees -- by making wire transfers to banks in Mexico. Tabler said the scammers kept up a professional facade in correspondence to the Alaska victim, promising that her money would be reimbursed after the timeshare was sold.
"These guys were good -- they had official-looking contracts, they had emails," Tabler said. "It was pretty official-looking."
Eventually, Tabler said, victims think they're obligated to keep throwing good money after the funds they've already lost.
"You're into it, and you feel like you have to keep doing it -- or you'll lose the money you put into it in the first place," Tabler said.
The BBB's website lists seven complaints against Carriage House from people who lost money in the scam. A complaint from one customer, filed in April, says the company took money for an escrow account and alleged fees from the Mexican government -- but didn't sell the customer's timeshare and demanded a cancellation fee when they asked for their money back.
"We then turned them in to the attorney general who informed us that they did not get a response back from them and since they can not do any more than just contact them, they were closing the complaint," the customer wrote. "This is nothing but a scam and we were dumb enough to fall for it. The $20,000.00 we are out was a hard lesson to learn."
Carriage House replied to some of the complaints, even telling a Washington customer seeking the return of about $10,000 in December that posting a complaint on the BBB's website before 60 days had elapsed constituted a "breach of contract."
"Due to the nature of the comments from the client, the comments should NOT be published as they have a very negative connotation," Carriage House representatives wrote. "We are operating within the parameters set forth in the contract the client signed. To date, we have done nothing that would even warrant a complaint."
None of the people targeted in the scam ever received refunds from Carriage House, according to the BBB. When the bureau tried to track the firm at its mailing address, staffers didn't find anyone behind the timeshare operation.
"This company was just a shell," Tabler said. "They didn't really have an office there; it was a mailbox thing."
Cindy Drinkwater, an assistant attorney general with the state's Consumer Protection Unit, said any complaints the unit receives about specific companies are confidential unless the state files a lawsuit against them. Online court records didn't list any proceedings against Carriage House as of Thursday morning.
"We accept consumer complaints and engage in an informal mediation process, and we base some of what we file as lawsuits on those complaints," Drinkwater said.
While Drinkwater couldn't comment on the Carriage House complaints, she said that the office has seen similar cases on a regular basis.
"We are generally aware of these kind of timeshare reseller scams," Drinkwater said. "It's fairly rampant across the country, and it happens in Alaska just the way it happens in other places."
Drinkwater encourages people who feel they've been victimized by unfair or deceptive business practices to file a complaint with the Consumer Protection Unit online or contact staff at 269-5200. According to the BBB, online complaints can also be submitted to the Federal Trade Commission.
The BBB offers these tips on avoiding timeshare scams:
-- Research. Search online to read what others have written about the company. Investigate to see if the company has a physical office, not just a mail drop address. Check its BBB Business Review and verified Consumer Reviews at bbb.org.
-- Never wire money. Wiring money for a business transaction or upfront fees should raise a red flag. It is the same as sending cash -- it is not traceable or refundable.
-- Legal advice. As selling a timeshare is a legal property transaction, it may pay to get legal advice. Make sure you have all documentation in writing from the company.