Is that timeshare exit company a scam?
If you own a timeshare you want to exit, you are a high-value target for two distinct scams. The first is the 'exit company' scam: you're cold-called or reached through an online ad by a company that promises to legally cancel your timeshare contract for a large upfront fee — typically $3,000 to $15,000. They take the fee, produce no results for months or years, and eventually become uncontactable.
The second is the 'resale' scam: a company claims to have a buyer waiting for your timeshare and needs an upfront fee for closing costs, escrow, or a title transfer. The 'buyer' disappears once the fee is paid.
Both exploit the fact that timeshare ownership is notoriously difficult to exit legitimately, and that many owners are genuinely desperate to be released from ongoing maintenance fees. The frustration of owning an unwanted timeshare creates exactly the vulnerability these operations target.
🚩 Red flags to watch for
- ▶A large upfront fee (often thousands of dollars) required before any work begins — legitimate legal and exit services typically charge after results.
- ▶A guarantee to exit your timeshare within a specific timeframe — no reputable service can guarantee what a timeshare developer will agree to.
- ▶Cold contact: you were called or emailed out of nowhere, not through a referral.
- ▶The company cannot provide verifiable client references, a physical office address, or registration with the Better Business Bureau.
- ▶Pressure tactics: 'This offer expires Friday', 'We have a buyer but we need your decision today.'
✅ What to do
- 1Contact your timeshare developer directly first. Many developers — including Marriott, Hilton, and Wyndham — have voluntary surrender or deed-back programs for owners experiencing genuine hardship.
- 2If you need professional help, consult a licensed real estate attorney in your state who specialises in timeshare law. Attorney fees are typically much lower than exit company fees and are paid for actual work.
- 3Check any company against the BBB (bbb.org) and your state attorney general's consumer protection database.
- 4Report fraudulent companies to the FTC (reportfraud.ftc.gov) and your state attorney general.
📣 Where to report (by country)
🇺🇸 United States
🇬🇧 United Kingdom
- Action Fraud
- Police Scotland — call 101
🇦🇺 Australia
🇨🇦 Canada
🌍 Everywhere else
- Contact your local police and your bank immediately
- If money was sent, ask your bank about a recall request — act within hours
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Common questions
Is it actually possible to exit a timeshare legally?
Yes, though it's often difficult. Options include: the developer's own voluntary surrender program (if they have one), selling on a resale market (usually at a significant loss; expect no profit), donating to a charity, or working with a licensed real estate attorney to negotiate an exit. Timeshares rarely appreciate and cannot typically be simply 'given back' without the developer's cooperation.
I've already paid an exit company and nothing has happened for a year. What can I do?
File complaints with the FTC (reportfraud.ftc.gov), the BBB, and your state attorney general. If the fee was paid by credit card, initiate a chargeback claim for services not rendered — this is most effective within 60–120 days of payment. Consider consulting a consumer protection attorney.