Timeshares exempted from income verification laws

Timeshare developers have been excluded from a new consumer protection law which could have made it more difficult to market their product.

A story at Barrons.com details how timeshare developers have been exempted from provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Under this law, most lenders are required to verify a borrower's income and employment status prior to approving a loan.

Representative Alan Grayson (D) is credited with pushing for the timeshare exemption.

Barrons suggests that if no for the exemption, timeshare sales could have suffered further during a time when demand is already soft.  Lou Ann Burney, spokesperson for the American Resorts Development Association disagrees:

"The typical time-share sale is similar to other 'point-of-sale' transactions, such as the purchase of an automobile. Traditionally, the consumer purchases the time-share interest of his choice…at the resort or sales center—often while on vacation. It would have been impractical to expect consumers to carry with them proof of employment or income."

Additional details are available at Barrons.com.


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