Exit Timeshare Exit Company Scams
If there’s one thing that hasn’t changed about the timeshare industry, it’s that Seniors continue to remain the primary target for scammers. Unfortunately, this is the very nature of the timeshare industry. There are numerous timeshare exit company scams, most of which prey upon unwary senior consumers.
Timeshare exit scams come in all shapes and sizes. On one hand, you have misleading salespeople who pressure you into a timeshare contract at the resort. And on the other hand, you’re at risk of running into a fake timeshare exit company that wants to run off with your money. They’re everywhere! And if you do not prepare yourself now, you are at risk of losing thousands of dollars.
The good news is our team has composed an in-depth article full of strategies that you can add to your timeshare defense arsenal. From timeshare resale scams to timeshare rental scams, to even fake attorney scams, our goal here at TimeshareExitAdvice.com is to help educate owners so they can protect themselves from becoming another victim of a timeshare exit scam.
If you felt like you were misled or pressured into something that you or your family did not want, we recommend you reach out to us immediately. Fill out the free consultation form on the right. Initiate a Live Chat with one of our experts for a free informational consultation. We can help you determine the best available option to exit your contract. To connect you with the right exit company for your particular situation, click here to schedule a free consultation with one of our experts. We’ll contact you within 24 hours to schedule your free call.
3 Common Timeshare Exit Scams to Avoid
Many timeshare owners are under the misconception that once their contract has expired they can simply walk away and not deal with the consequences. This is a very dangerous assumption to make.
The fact is that many timeshare contracts contain provisions that require you to pay maintenance fees and/or fees for future vacations until the entire contract has been paid off. Or sometimes they’re never-ending! The further along you get into your contract, the higher the amount you will have to pay in maintenance fees becomes. For this reason, it is essential that you educate yourself about the exit process and figure out what your best options are from the very beginning.
The problem for many owners who wish to get rid of their timeshare is that they find themselves in an undesirable situation, financially and mentally, and they don’t know where to turn. This can lead to them feeling desperate and taking drastic measures to get rid of their timeshare as quickly as possible – including paying for “guaranteed” timeshare exit scams. These scams promise fast results at a very low upfront cost but end up costing the owner more money in the long run. Therefore, it is very important that you know the signs of a scam so that you don’t end up falling victim to one.
Here are 3 of the most common scams to be on the lookout for:
Timeshare Resale Scams
Timeshare Resale scams are widespread throughout the timeshare cancelation industry. If you’re browsing the internet for a way to exit your timeshare, you came to the right place. You’ll probably come across a couple of dozen listing companies all boasting about how fast they can sell your timeshare. Some will even go the extra mile and claim they have a buyer right now who is willing to take this burden off your hands.
Our team does not recommend you sell your timeshare for a couple of different reasons. To start, for those who haven’t paid off your loan, selling your timeshare does not magically remove your remaining balance. Your timeshare will bear the title “encumbered”, thus disqualifying you from selling your timeshare until it has been fully paid off.
For those who have paid off their timeshare, we still do not recommend hiring a listing company to sell your timeshare. Timeshares depreciate almost immediately after purchase. In some extreme cases, we have seen owners’ timeshares drop by 90% from their original value. In addition, there is no official timeshare resale market, automatically increasing the risk of timeshare sales scams. It is extremely difficult to sell your timeshare.
Many owners are to the point where they have given up and have listed their timeshares for as low as $1 on platforms such as eBay or Craigslist. If someone is selling their timeshare for $1, what makes you think the listing company will find someone who is willing to buy your timeshare for almost the original price? Now you’re paying additional services when you still haven’t canceled your timeshare.
Timeshare Rental Scams
Timeshare Rental Scams can cause you a ton of headaches if you’re not careful. Similar to timeshare telemarketing scams, they consist of cold call scams where the “company” calls timeshare owners and offers to list their timeshare for a high price in return for hundreds of up-front fees. The scam companies will cold call owners and pressure them into paying up-front. In order to do that, they have promised the owners they already have “secured” buyers or renters ready to use their timeshare.
What ends up happening is the timeshare owners who are eager to earn some money off of their expensive timeshare. They will invest in these up-front fees, only to find there were never any renters or buyers, to begin with. Now they’ve lost hundreds, possibly even thousands, with no viable option to receive a refund because the company has run off with their money. Now the owners are left in an even bigger financial debt, becoming another victim of a timeshare rental scam.
Timeshare Network Scams
Timeshare Network Scams are some of the most difficult scams to avoid because of how many people can be involved. Whether they offer to rent, resale, or even debt consolidation services; the scammers could just be operating out of their apartment or home with burner phones, posing to be agents operating out of full offices. It doesn’t stop there, fake attorney scams are also something to watch out for. The company could easily “transfer” you to their “partnered law firm”, with an agent posing to be a fancy lawyer. He could be boasting about his licenses and reputation, all just to bring you on board.
AARP wrote a recent article in 2017 on one of the biggest timeshare network scams in history. A firm called International Marketing Solutions made up of 8 ring leaders, ran one of the largest call center rings in the cancelation industry. Based out of Orlando, FL, they started in about 2009 after the great recession in 2008.
The company really peaked in about 2011 when the FTC was flooded with complaints. The complaints were mentioning how they took advantage of desperate people. Posing as real businesses that could help owners rent or resell their timeshares. In 2013 the Federal Trade Commission filed about 191 cases against the scammers, eventually leading to all 8 ringleaders being arrested in 2015. Although the leaders were arrested, the criminal phone activity is so dispersed with smaller operations, they are almost untraceable. To learn more about this timeshare network scam, click here.
2022 Class Action Lawsuits
On June 23, 2022, in federal court in Alaska, a new lawsuit was filed against 7 corporations and 8 individuals who possibly operated a timeshare exit scheme. – Treg Taylor – The State Attorney General of Alaska, says the defendants used fraudulent tactics to trick people into paying huge sums to get out of their timeshares.
9 Alaskan consumers were targeted, reportedly paying over $113,000! If you fall for this scam, you will likely see similar charges against you in the future. To learn more about this lawsuit, click here.
FantaSea Resorts is a developer in the timeshare industry. Recently they were the defendants of a class action lawsuit filed in New Jersey. The lawsuit alleges that the defendants misrepresented the business’ services by providing false information that was in direct violation of the New Jersey Real Estate Timeshare Act (RETA).
As a result, a grand jury in the Superior Court of New Jersey awarded over $1 million in damages to the owners of timeshares who were misled by the defendants. To learn more about this lawsuit, click here.
In conclusion, owners should always contact their timeshare developers first. To see if there are any deed-back or buy-back exit options. If unsuccessful, our next recommendation is to look into hiring a legitimate timeshare exit company. Especially one that offers escrow! That way you stay protected from a potential exit scam.
There is no debate that numerous timeshares exit scams appear every year. And as the scams continue to adapt, so should your knowledge and skills to protect yourself against them. Our goal with our review site is to help you get a closer look at how timeshare exit companies operate. If you learn how a reputable exit company operates, it’ll make red flags easier to point out when you come across one.
As always, contact our team so we can help you determine if a timeshare exit company is reputable. We only recommend timeshare exit companies that have no up-front fees and offer an escrow option, so you stay protected. Read over our website and fill out the form on the right. Also, contact us through Live Chat for a free informational consultation. Learn how you can protect yourself from a timeshare exit scam!