The 5 Signs of a Timeshare Exit Scam?

For some people, a timeshare is a sensible investment. It lets them enjoy the perks of a private vacation property without having the full costs and other burdens of sole ownership. However, many people who invest in timeshares may regret it after a while or eventually want to exit their agreements for other reasons. Those people are prime targets for timeshare exit scammers.

This guide looks at how timeshare exit scams work and some warning signs to watch for.

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How Do Timeshare Exit Scams Work?

These scams can take different forms but typically involve an individual or business contacting a timeshare owner and offering to help them exit their agreement. They might claim that they can assist you in terms of handling the paperwork and legal side of exiting your timeshare contract, or even offer to buy your timeshare from you or help you sell it to some other buyer or company.

In reality, they’re just trying to trick you out of your money. They might, for example, ask for up-front “admin” fees or other fees in exchange for promised services, and then simply vanish with your money. Or, they’ll make you pay for something you could have easily done yourself, like calling the timeshare company or resort and asking to cancel your ownership.

In the worst cases, these scams can be exceptionally damaging to victims, as the fees and needless payments add up over time. For example, a scam might proceed like this:

The scammer contacts the victim, saying they’ve found a buyer for their timeshare at a price of $40,000. They say the victim just has to pay a $4,000 up-front fee to facilitate the sale.
The victim makes the payment, but then the scammer invents more fake fees. The victim feels obliged to keep paying, as they’re already invested by this point.
The scammer continues to use pressure and even threats to make their victim pay thousands more in fees. And, even if the victim wants to back out, the scammer will invent “cancellation fees” or introduce threats of legal action, unless their victim pays up.
By the end, the victim may have paid well over the $40,000 they expected to get from the sale and have nothing in exchange.

Signs of Timeshare Exit Scams

Sign 1. Messages or Calls Out of the Blue

There are legitimate timeshare exit companies out there, but they won’t usually just call you or send you messages out of the blue. They’ll wait for you to get in touch with them and request their services. If you get messages or calls from companies you’ve not heard of or spoken to before, there’s a good chance that they are not legitimate.

Sign 2. Offers That Seem Too Good to Be True

This is one of the common signs of many scams – scammers often operate by enticing victims with claims of amazing deals or great value services. However, when something seems too good to be true, that usually means it’s fake. If a company says they want to buy your timeshare for several thousand dollars more than it’s worth, for example, that’s an immediate red flag.

Sign 3. Up-Front Payment Demands

So many scams involve up-front payments, and legitimate companies will rarely require you to pay in advance before receiving their services. They certainly won’t ask you for large payments (thousands of dollars) before you get anything in return. So, be particularly wary of any company that demands you pay them a significant amount of money before they’ll do anything for you.

Sign 4. Threatening or “High Pressure” Language

Timeshare exit scammers, just like many other scammers, often resort to threatening or coercive language, or other methods designed to instill a sense of urgency in their victim. They might say you have to pay now or act fast to get the deal done so that you feel more inclined to pay them quickly without thinking things through or doing more research.

Sign 5. International Payments

Many timeshare scammers are not necessarily based in the U.S. – there have been many cases, for example, of Mexican cartels being behind timeshare exit scams. Part of the scam may involve the victim having to make an international wire transfer to a bank account in another country. These transfers can be hard to trace and undo, which is why they’re so risky.

How to Protect Yourself from Timeshare Exit Scams

Be cautious of any company offering to help you out of a timeshare agreement.
Refuse to pay an up-front fee for timeshare exit services.
Speak with a lawyer or other expert before pursuing any type of timeshare exit or sale.
Research companies that contact you to see if they’re known and trusted.

Report the Scam

You can report timeshare scams as follows:

Report to the FTC.
Report to the FBI Internet Complaints Center.

How to Protect Yourself More

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Read more about timeshare scams and timeshare resale companies under investigation.

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