Scams are rampant in the timeshare exit and cancellation industry.
Most timeshare exit scams involve a timeshare exit company telling a timeshare owner to stop paying their maintenance fees while the timeshare is in the process of being canceled. This often leads to disastrous consequences for the timeshare owner because delinquent maintenance fees can severely impact a timeshare owner’s credit score in a negative way.
A damaged credit score means the timeshare owner may have difficulties getting a loan for a car or house in the future. If a timeshare exit company advises you to stop paying your maintenance fees, ask them for proof that the timeshare has been transferred out of your name first before even thinking about proceeding.
Evidence of this can be seen in a major decision given by the Washington State Attorney General against a well-known timeshare exit company. Click here for details about the $2.6million fine handed down for “deceptive timeshare exit practices” identified by the AG’s office.
We've outlined more steps below to avoid scams when searching for a reputable resale provider. If you need to discuss your ownership in more detail then please fill out our form so we can talk over options with you.
Not Paying Fees? Not A Strategy
Not paying your maintenance fees isn’t a timeshare exit strategy. It’s simply bad advice. Think about it. You could stop paying maintenance fees and let your timeshare company foreclosure on your timeshare all on your own. You don’t need to hire a timeshare exit company to do this for you.
The problem with this idea is that timeshare resorts are aware of this strategy and have decided not to respond to these tactics. Because the resort or management company is the only one who can authorize the cancellation of a timeshare agreement, they simply refer these cases to debt collectors rather than listen to an exit request. Put your timeshare up for sale or contact your resort first before even thinking of not paying your annual fees.
More Scams to be Aware Of
Another popular scam is when a timeshare exit company offers a 100% guaranteed timeshare exit solution. The ability to cancel or exit your timeshare is ultimately left up to the timeshare developer’s discretion. No one, not even a lawyer, can guarantee that you will get out of your timeshare agreement unless the timeshare is purchased or transferred to the lawyer or timeshare exit company’s name.
One of the most risky timeshare exit scams is when a timeshare exit company transfers ownership out of your name and into a "Viking Ship LLC" or a shell company that acts as a third-party holding company. Once the transfer is complete, the timeshare holding company files to dissolve the "Viking Ship LLC" so the timeshare developer is unable to sue and/or foreclose on the timeshare’s owner. This practice is illegal in some states such as Florida and can come with serious repercussions.
How Do Reputable Companies Operate?
When shopping for a timeshare exit or resale company, look for the following qualities that are common amongst reputable businesses.
Reputable companies use written contracts that specifically outline the services that will be provided. In some states such as Florida, written contracts are a legal mandate for many timeshare products and services.
Legitimate companies will have a customer service phone number you can call to ask questions. We recommend calling the company’s phone number to see if anyone answers the phone and observing how they answer. If someone picks up when you call, does this person greet you with a mention of the company’s name? If not, you could be dealing with a scam operation.
Most legitimate companies will have a physical address with an office that you can visit. Look out for companies that use a P.O. box as their business address because this is often a sign of a scam. If you find out the company you’re working with is a scam, you’ll want to know their physical address, so you can report them to the police and attempt to get your money back.
Reputable companies will have their business names registered to do business in the state in which they reside. You can find out if a company is registered by doing a search on the state’s business registration website. In Florida this website is sunbiz.org.
Years in Business
Companies that have been around for a while are usually more trustworthy than start-ups. Bad businesses simply do not last very long.
Don’t get scammed by a timeshare exit company. Resell your timeshare on the secondary market with BuyaTimeshare.com and get some extra cash for your timeshare purchase. We’ve been in business since 2000 and have received over $100 million in timeshare offers over the past two years alone. Fill out the form on this page or call 1-800-640-6886 to get started.