How do Timeshare Exit Company Scams Work?
Because timeshare cancellation can be difficult, many people look for help when they are ready to move on from one. Sometimes, people are blinded by promises and guarantees in their quest for assistance. Furthermore, fake timeshare exit companies are notorious for preying on unsuspecting timeshare owners by claiming that they can get them out of their timeshare contract for a cancellation fee. On occasion, they will even use pitchmen and celebrities to add some form of trust to their illusory offerings.
In many cases, these fake timeshare exit companies take the victim’s money and run. The exit company never performs the services as promised, and they later shut down or go bankrupt leaving the timeshare owners with a contract they can’t get out of with no way to get their money back. So, how can you tell if a company offering timeshare exit services is legitimate or not?
Timeshare Exit Companies Explained
The Better Business Bureau has reported that timeshare exit company scams have dramatically increased in recent years. While some of these businesses may appear to be legitimate, others have seemingly popped up overnight and have been accused of scamming timeshare owners out of thousands of dollars. These timeshare exit companies claim that in exchange for an advanced commission and fee, they will be able to get you out of your timeshare contract, with no strings attached. This claim comes with a written 100% money-back guarantee. It’s critical however to be cautious of a company that has no legal credentials and offers no transparency about its cancellation services. Timeshare exit companies often declare that they have a foolproof technique for terminating your contract. “There’s no magic sauce,” says attorney J. Andrew Meyer. “Each file has unique issues and those blanket guarantees by timeshare exit companies can not safely be relied upon.“, said Meyer.
Fake Timeshare Exit Companies
Timeshare exit scams have been around for some time. But recently, there has been an increase in fake companies that replicate exit companies. Their presence online and activity on social media have been detected as scam artists pretending to be a timeshare exit company. These criminals work in teams often requiring an upfront fee (sometimes as high as $25,000) to exit a timeshare via sale.
Another telltale sign that you are being targeted for a timeshare exit scam is implied urgency. These time-based promises to get you released from your timeshare contract in exchange for fast payment are the ultimate guarantee or hook currently being used. Any company that guarantees that you will be let out of your contract with such high-pressure tactics is likely trying to scam you, and you should avoid them.
Once these fraudsters collect their commissions and bogus fees, you will likely never hear from them again. Any attempts to reach out to the timeshare exit company will ultimately be a dead end. Your timeshare developer or resort will likely have never heard of the company, know nothing of your issues, and will almost certainly do nothing to release you from your timeshare contract with any timeshare exit company involved. You will then have lost the money you paid to the timeshare exit company while still being obligated to continue paying on your timeshare and you may incur other legal problems as a result of their involvement.
How To Protect Yourself From a Timeshare Exit Company Scam
Unfortunately, scam artists and shady companies exist in the secondary market, and they target people who they believe are vulnerable and uneducated about timeshare exit services. The best defense against these scammers is consulting with an experienced and trusted timeshare lawyer.
If you are in the market for timeshare exit services, it is important to do your due diligence. Check out the company with the Better Business Bureau, and read reviews. If a company cannot or will not provide you with clear and easy-to-understand information about their services, it is likely a scam.
It is also important to remember that no company can guarantee a 100% success rate in getting you out of your timeshare contract. If a company makes this claim, it is likely a scam.
Lawyers specializing in timeshare cancellation can help you legally get out of your timeshare obligation. Because these lawyers are licensed attorneys, you can trust that they will have an ethical obligation to treat you fairly and follow the law.
For over 10 years, the Finn Law Group has assisted owners with timeshare cancellations. With experience and knowledge in timeshare contract law, the lawyers at Finn Law Group can help you with timeshare problems. Led by attorneys Michael D. Finn and J. Andrew Meyer with over 75 years of experience, the Finn Law Group is a consumer protection firm that specializes in timeshare-related issues. Contact us today for a free consultation if you feel you need assistance or have been taken advantage of by a timeshare exit company.