How to Avoid Timeshare Exit Scams

To avoid timeshare exit scams begins with understanding how scammers use public records and advertising to find contact information and convince owners to sell or cancel contracts through fake companies. These scam operations often demand large up-front fees, guarantee results, or tell you to stop mortgage or fee payments before anything is done. They claim to offer legal services or money back guarantees, but in most cases, they do nothing and simply take your money. Unsolicited calls, travel club offers, or messages that promise to “help you get out” are consistent red flags. Some shady companies hide behind a faceless structure, lack a physical office, or use a virtual office as their address, making it difficult to verify who they are.

To avoid timeshare exit scams, owners must follow specific steps that help verify legitimacy, detect fraud, and prevent financial loss. 

The steps to avoid timeshare exit scams are listed below.

1. Research the Company

Research the company before signing any timeshare cancellation agreement. Search online using the company name with words like scam or complaint to identify fraud. Verify if it has BBB Accreditation, a physical office, and transparent business practices. Avoid any faceless company using a virtual office or registered agent as an address. Legitimate timeshare exit companies list real owners and use standardized pricing instead of charging exorbitant up-front fees.

2. Review All Paperwork

Review all paperwork carefully. Read every contract and ensure all promises are in writing. Fraudulent firms often claim to offer money back guarantees or “legal services” but include vague or false clauses. If a company demands large up-front fees, avoid them. Genuine providers include clear refund policies and never push for high-pressure decisions.

3. Confirm Physical Presence

Confirm physical presence of the company. Use internet search to verify the address and ensure it’s not a virtual office or registered agent. Scammers build websites to appear legitimate but lack a real office. Companies in the timeshare cancellation industry with genuine locations operate more transparently and handle services professionally.

4. Check Pricing Honesty

Check pricing honesty by confirming whether the firm uses standardized pricing and transparent business practices. Avoid non-standard pricing or thousands of dollars upfront, as these are clear indicators of a scam. Unethical companies hide fees and promise to cancel your timeshare in weeks, but never deliver results.

5. Verify Refund and Guarantee Policies

Verify refund and guarantee policies before signing any timeshare cancellation agreement. Real companies include a clear money back guarantee in the contract, not just verbal claims. Avoid firms with vague refund terms or hidden conditions.

Legitimate timeshare exit companies show transparency, uphold BBB Accreditation, and explain refund rules in writing. False or unclear guarantees signal a scam and risk losing your money.

6. Avoid Fake Legal Claims

Avoid fake legal claims that involve paying a middle man, attorney, or lawyer claiming to represent you without a license. Only a licensed attorney can legally handle your timeshare cancellation case. Any company that acts as an intermediary between you and an attorney violates ethical and business standards.

7. Identify Travel Club Scams

Identify travel club scams that disguise themselves as timeshare exit services. Reports show 99.99% of these travel clubs are scams. They promise luxury travel or refunds but often take your money and disappear. Avoid all unsolicited calls, dinner parties, and owner update meetings designed to push travel club memberships.

8. Look for Transparency

Look for transparency in every timeshare exit company you contact. Legitimate firms display clear ownership, ethical business practices, money back guarantees, and a verifiable digital footprint. Avoid unscrupulous companies that make unrealistic promises, use pressure tactics, or sound too good to be true.

9. Reporting and Support for Timeshare Scam Victims

Report timeshare resale scams to the FBI Internet Crime Complaint Center (IC3) at ic3.gov. Include money lost, wire transfers, bank account numbers, business names, individuals, phone numbers, and email addresses used by scammers.

Contact the Resort Owners’ Coalition under the American Resort Development Association for help. Their online resource center and contact us provide step-by-step advice for timeshare owners facing resale scams.