Timeshare exit scams: the red flags and how to vet a company
Owners who want their vacations back are a target. Here is how to tell a legitimate exit company from one that will take your money and leave you still owning the timeshare.
The biggest warning signs of a timeshare exit scam are:
- Guaranteed results or a "100% money-back" promise with fine print.
- Large fees before any work, especially by wire or gift card.
- An unsolicited call claiming a buyer is waiting.
- Pressure to sign today.
- Advice to stop paying without explaining the credit and foreclosure risk.
Get every promise in writing, and check complaints with your state attorney general before you pay.
Red flags
| What you hear | Why it's a problem |
|---|---|
| "We guarantee we'll get you out." | No one controls the developer's decision or a court. Guarantees usually come with conditions that make refunds hard to get. |
| "We have a buyer ready, just pay the closing fee." | Real buyers pay closing costs through a title company, not to the person who called you. |
| "Stop paying your fees, we'll handle it." | Stopping payment can damage your credit and lead to foreclosure while you still own the timeshare. |
| "This offer expires today." | Pressure is a sales tactic. A legitimate firm will let you read the contract and ask questions. |
| "We're with the government" or "we're your resort's exit department." | Impersonation is common. Call the resort yourself using the number on your statement. |
| Payment by wire, gift card or crypto | These are hard to recover. Pay by card so you can dispute charges. |
Questions to ask before you sign
- What is the total fee, and exactly when is each part due?
- What do you do for that fee, step by step, and how long does it usually take?
- What happens if you can't get me out? Is the refund policy in the contract?
- Who does the legal work? Is there a licensed attorney, and in which state?
- Will you tell me to stop paying anything? If so, what are the risks for my contract?
- Can I talk to my resort myself while you work on my case?
Then search the company's name with "complaint" and check your state attorney general's site and the Better Business Bureau. A pattern of unresolved complaints is a reason to walk away.
Resale scams
The classic version: someone calls about your timeshare, says a buyer will pay more than you expected, and asks for an upfront fee for appraisal, taxes or closing. After you pay, the buyer disappears. Never pay a fee to someone who contacted you first. If you want to sell, choose a licensed broker or listing site yourself, and close through a title company.
If you've been scammed
- Call your bank or card issuer right away and ask about a dispute or chargeback.
- Report it to the FTC at ReportFraud.ftc.gov.
- File a complaint with your state attorney general and the attorney general where the resort is.
- Be wary of "recovery" companies that call offering to get your money back for a fee. That is often a second scam.
FAQ
How can I tell if a timeshare exit company is legitimate?
Ask for the full fee, the timeline, what happens if they fail, and the refund policy in writing. Look up complaints with your state attorney general and the Better Business Bureau, confirm who actually does the legal work, and walk away from anyone who guarantees results.
Is it normal to pay a timeshare exit company upfront?
Many legitimate firms charge a fee, sometimes partly upfront. What matters is that the contract clearly states the fee, what you get for it, and whether and when you could potentially get money back. Large upfront fees paired with guarantees are a red flag.
Someone called offering to buy my timeshare. Is it real?
Be very careful. Unsolicited calls claiming a buyer is waiting, followed by a request for closing, tax or appraisal fees, are one of the most common timeshare scams. Real buyers pay closing costs through a title company.
Where do I report a timeshare exit scam?
Report it to the FTC at ReportFraud.ftc.gov, your state attorney general, and the attorney general of the state where the resort is located. If you paid by card, contact your bank about a dispute right away.
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