Court Bans Timeshare Sale Advance Fees

Timeshare companies can no longer frustrate customers with advance fees they once charged to list properties for sale. Resale companies charged owners upfront fees to sell timeshares on their websites.

Linda Scotti paid 500 dollars to list her unit, then felt it was a costly mistake. "They took my money and pocketed it and didn't try to sell it, and did that to everybody."

Orlando's Better Business Bureau has hundreds of complaints against dozens of local timeshare companies that charge advance fees. This court ruling in Tallahasse makes that practice illegal. A circuit court ruled in the state's favor, which will prohibit collecting fees from Florida residents or anyone who owns a Florida timeshare.

Consumer advocates like Lisa Schreier say it's about time. "It's a huge coup for consumers who will be able to save millions of dollars."

Timeshares Only on I-Drive is one of the biggest upfront fee resellers anywhere. Off camera the company said it's collecting fees while it reviews the decision. Other resale firms are expected to challenge the ruling in court claiming the fee is for advertising.

But past victims say the ban is long overdue. "That's great, that's the way it should be," said Linda Scotti.

Florida's Department Of Business and Professional Regulation filed that lawsuit against a Texas reseller 11 years ago. That company could still appeal the ruling.