Protecting Yourself from Timeshare Exit Fraud
As the demand for timeshare exit services has grown, so has the number of fraudulent companies looking to take advantage of desperate owners. Here are five common scams to watch out for.
1. The Upfront Fee Scam
How it works: A company demands large upfront fees before doing any work, then disappears or provides minimal service.
Protection: Work with companies that offer payment plans or escrow arrangements, and always verify their track record.
2. The Fake Buyer Scam
How it works: Someone claims they have a buyer for your timeshare but needs you to pay fees first to complete the sale.
Protection: Legitimate buyers don't require sellers to pay fees. If it sounds too good to be true, it probably is.
3. The Impersonation Scam
How it works: Scammers pose as representatives from your resort or a government agency, claiming you must pay fees to exit.
Protection: Always verify the identity of anyone contacting you by calling the official number for your resort or agency.
4. The Resale Listing Scam
How it works: Companies charge fees to list your timeshare for sale on websites that generate no actual interest.
Protection: Research any listing service thoroughly and be wary of guaranteed sale promises.
5. The Recovery Scam
How it works: After being scammed once, victims are contacted by someone claiming they can recover their lost money—for a fee.
Protection: Be extremely cautious of anyone offering to recover funds from a previous scam.
How to Find a Legitimate Exit Company
- Check BBB ratings and reviews
- Verify they have licensed attorneys
- Look for money-back guarantees
- Ask for references from past clients
- Avoid companies that use high-pressure tactics
