Buying into a vacation dream should never become a financial nightmare. Unfortunately, thousands of timeshare owners across the country have found themselves trapped in costly timeshare contracts with few options to exit. In desperation, many turn to what seem like helpful solutions—timeshare exit services promising relief. But not all that glitters is gold. In fact, an alarming number of fraudulent exit companies have emerged, targeting mostly older adults with high pressure sales and false promises. The result: lost savings, legal confusion, and no actual escape from unwanted timeshare ownership.
If you or someone you love has been caught in a timeshare exit scam, understanding your rights and the available legal remedies is key. Federal and state laws offer important protections, and knowing how to act immediately may help you recover some of what was lost.
The Rise of the Timeshare Exit Scam
Timeshare contracts are binding and often difficult to terminate. Many major timeshare companies do not allow owners to walk away easily, charging ongoing maintenance fees and other additional fees even after a buyer no longer uses the property. This has created fertile ground for the timeshare exit industry—a market filled with both legitimate timeshare companies and deceptive actors looking to lure time share owners into financial traps.
Some exit companies market through direct mail campaigns, email, or even unsolicited phone calls. In fact, many victims report that the exit company simply calls, offering an “easy solution” for getting out of their timeshare ownership. But behind these high pressure sales pitches are often unethical companies demanding large upfront fees—sometimes thousands or even tens of thousand dollars—with no intention of following through.
How These Exit Services Operate
Scam operators use various high pressure tactics and scare tactics to convince time share owners to stop paying their maintenance fees and sign over legal power to the exit services. They might claim to have relationships with your resort company, or insist that the resort company agrees to cancel your contract. Often, they rely on sales representatives who are well-trained in high pressure sales presentations, offering such advice as “just trust us” or “we’ve done this hundreds of times.”
Unfortunately, fraudulent company representatives may be working from call centers without proper legal training or proper licensing. They may pose as legal professionals or real estate agents, but many are unregulated resale company outfits operating outside consumer protection standards.
Real Stories, Real Damage
The Wisconsin Attorney General, among other state leaders, has taken legal action against several three timeshare exit companies for scamming consumers. Similarly, the Minnesota law community has also flagged fraudulent exit companies operating under the guise of debt settlement service providers. These cases often involve individuals paying up front fee after up front fee, only to later find that their timeshare contracts remain untouched.
Victims suffer more than just financial loss. Many endure emotional distress, damage to their credit score, and the stress of possible foreclosure or financial penalties. In some instances, owners are also hit with possible tax consequences if the resort company pursues cancellation through IRS reporting.
Timeshare Exit Scams: Legal Remedies for Defrauded Owners
The Federal Trade Commission (FTC) and state attorney general offices have increased oversight of timeshare exit services, labeling many tactics as illegal under consumer law protection statutes. The former Federal Trade Commission chair even commented on the need for broader regulations and clearer enforcement in the timeshare resale market.
Federal law requires that any service charging advance fees must clearly state what the money is for, deliver services as promised, and operate with transparency. Still, enforcement remains uneven. Some timeshare exit company operators shift jurisdictions, change names, or use shell companies to avoid detection.
In addition to FTC oversight, foreign assets control laws and consumer protection acts apply, especially when unethical companies promise results to U.S. consumers but operate offshore.
What to Watch Out For
Here are red flags indicating a potential timeshare exit scam:
- They demand large upfront payments
- They lack proper licensing or legal credentials
- They avoid using written contracts
- They pressure you to act during or after high pressure sales presentations
- They use scare language like “lawsuit” or “bankruptcy” in casual conversations
- They give you a dispute letter template but no legal guidance
- They contact you repeatedly, sometimes three to four calls in a single day
- They claim to be real estate broker or debt settlement service providers, but cannot verify
Many also encourage owners to watch absurd presentations or testimonials that are staged. Always check with the Better Business Bureau or business bureau in your state to verify reputation. Moreover, we also recommend learning how to file a consumer law protection lawsuit before moving forward.
Consumer Protections and Legal Remedies
If you’ve fallen victim to one of these exit companies, you may still have legal options. Here’s what you can do:
1. Gather Evidence
Start by collecting all communication with the timeshare exit company, including emails, contracts, payment receipts, and any documentation of upfront fees or false promises. These will be crucial in proving fraud and pursuing a claim.
2. Report to Authorities
File a report with the Federal Trade Commission, your state attorney general, and the Better Business Bureau. Some states have created specific consumer protection divisions focused on timeshare resale scams and exit services.
3. Contact Legal Professionals
A qualified attorney familiar with timeshare law can guide you on how to recover funds, dispute contracts, and hold fraudulent company operators accountable. In some cases, you may be able to recover your thousand dollars through legal claims under consumer law protection and timeshare law statutes.
Can You Sue a Timeshare Exit Company?
Yes. Many consumers have successfully sued fraudulent exit companies in civil court, especially when there is evidence of false promises, lack of proper licensing, or misrepresentation. In certain cases, courts have awarded damages, refund consumers, or even issued injunctions to shut down these firms.
Lawsuits may also involve major timeshare companies if it’s proven they were complicit or failed to warn consumers about certain resale scams.
Prevention Tips: How to Avoid Falling Victim
Avoiding such scams often comes down to caution and research. Before signing anything:
- Check whether the company is licensed and bonded
- Read every contract carefully and avoid high pressure sales tactics
- Be skeptical of anyone promising a “guaranteed exit”
- Confirm if they’re listed on the Better Business Bureau or similar watchdog lists
- Don’t trust sales representatives who tell you to stop paying your maintenance fees
- Always consult legal professionals before giving any up front fee
Remember, legitimate timeshare companies and reputable exit services will never push you into signing under pressure.
Final Thoughts: Don’t Let a Scam Define Your Future
The timeshare resale and exit services industry is complicated—but your rights are not. If you’ve been deceived, misled, or defrauded, you can fight back. Whether it’s recovering your thousand dollars, fixing your credit, or escaping a costly timeshare contract, the law is on your side.
Get Help From Experienced Timeshare Attorneys
If you’ve been impacted by a timeshare exit scam, the team at Bourassa Law Group can help. We have experience battling fraudulent exit companies, navigating consumer protection laws, and securing justice for victims. We know how to hold unethical companies accountable and will fight to recover what’s rightfully yours.
Contact us today for a free consultation and take the first step toward financial recovery and peace of mind.
1-800-870-8910